Here are the key news, trends, and analysis investors need to start their trading day:
1. Wall Street looks stable after last week’s delta-driven Covid concerns
A trader works on the New York Stock Exchange on August 27, 2021.
Source: NYSE
US stock futures were flat on Tuesday after a much weaker-than-expected job report in August reflecting the impact of the delta-powered Covid resurgence in the US pushed the S&P 500 down from a record close on Friday. However, the Nasdaq made a small profit and another record result. The Dow Jones Industrial Average fell on Friday, trading 0.7% off last month’s record high for the new trading week. Over the weekend, Goldman Sachs cut its estimate for US economic growth to an annual rate of 5.7% in 2021, which is below the consensus of 6.2%. The US stock market was closed on Monday for Labor Day.
2. El Salvador is the first country to introduce Bitcoin as legal tender
One of the many stores that accept Bitcoin in El Zonte, El Salvador.
Bitcoin fell 1.5% on Tuesday after exceeding $ 52,000 on Monday, a level not seen since May when El Salvador announced it had bought 400 bitcoins valued at nearly $ 21 million . The announcement came when El Salvador’s Bitcoin law, passed in June, went into effect on Tuesday, making Bitcoin legal tender there. El Salvador is the first country to do this. However, since Bitcoin is known for its volatility at times, the move raised concerns about its effectiveness as a currency. Bitcoin hit an all-time high of over $ 64,000 in April, but sold out heavily in June and July, even falling just below $ 30,000. But since mid-July, Bitcoin has been gaining ground again.
3. Pfizer Covid Booster vaccinations can be ready as early as the week of September 20th
Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, makes an opening statement during a Senate Committee on Health, Education, Labor and Pensions hearing to discuss the ongoing federal response to COVID-19 in the U.S. Capitol in Washington, DC , May 11, 2021.
Greg Nash | Swimming pool | Reuters
With the total number of Covid cases in America topping 40 million over the holiday weekend, Dr. Anthony Fauci, Senior Medical Advisor to the White House, said the US will likely begin widely distributing Pfizer vaccine booster vaccinations by the week of September 20th. The Biden government has announced plans to offer people who have received either the Pfizer or Moderna vaccine a third dose pending approval from health officials. The US recommends an additional injection eight months after the second dose. However, only Pfizer can get FDA and CDC clearances in time for the launch, Fauci said on Sunday.
4. Biden visits Ida flood damage in New Jersey and New York
U.S. President Joe Biden attends a briefing with local leaders on the impact of Hurricane Ida on September 3, 2021 at the St. John Ward Emergency Center in LaPlace, Louisiana.
Almond Ngan | AFP | Getty Images
President Joe Biden will investigate the damage in parts of the northeast that suffered catastrophic flash floods last week from the remnants of Hurricane Ida. Biden will tour Manville, New Jersey and the New York borough of Queens on Tuesday. At least 50 people were killed in six eastern states when record rainfall flooded rivers and sewer systems last week. Some people were trapped in fast-filling basements and cars or were swept away trying to escape. The storm also spawned several tornadoes. More than half of these deaths occurred in New Jersey. Biden visited Ida Damage on the Gulf Coast last week.
5. Deutsche Telekom cancels T-Mobile US stake in SoftBank swap deal
Headquarters of the German telecommunications giant Deutsche Telekom in Bonn.
Andreas Rentz | Getty Images
Deutsche Telekom has signed a $ 7 billion share swap deal with SoftBank to increase the German group’s stake in T-Mobile US. Deutsche Telekom also sold its Dutch unit. As a result of the two steps announced on Tuesday, Deutsche Telekom will increase its stake in T-Mobile by 5.3% to 48.4% and bring CEO Tim Hoettges closer to his goal of direct control of the US $ 170 billion -Mobile operator. In return, SoftBank will receive cash and a 4.5% stake in Deutsche Telekom after the Japanese group sold its US Sprint unit to T-Mobile in early 2020.
– Associated Press and Reuters contributed to this report. Follow the whole market like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.
